Morocco Economics of Utilities
From International Business Wiki
As the same as all developing countries, the basic needs of each country needs to be fulfilled in some way. This is the only way they can grow economically and socially. One of the important aspects to the Morocco economy is the usage of power and water in the country. The water situation in Morocco is very unique. Even though Morocco is a coastline country, having the occasional drought isn’t uncommon from time to time. Rain fall can be very dense in the northern part of the country and yet be very limited in the southern areas in the country. For this reason, Morocco is cut up into different sectors and each have to either export water or import water to its respective areas. As of 1990 most of the houses in the urban areas of Morocco had a water supply, yet only around 14% or rural households had a solid secure supply of water(2). The water development for the country is so crucial that it is directly linked to its agriculture. Agriculture is fundamental to the social and economic development of the country. Morocco as a country can produces some of its own energy, gets energy imported into the country. In 2004, Morocco produced 18.48 billion kilowatts per hour of electricity for the country. Most of the power is produced by hydropower from dam sites around Morocco. The country consumption for 2004 however 18.89 billion kilowatts per hour which can pose a problem since it uses more then it generates. For this reason, one of the imports for Morocco is electricity to help power the country (3). Hydropower is so important to the country that it actually saves 700,000 tons of oil per year in usage which in turn helps the economy (2). The energy and water affects the economy directly in many ways. In the agricultural aspect of Morocco, water is a necessary for the crops that they grow such as vegetables, wines, and olives. This are not only consumed in the country itself, it is also used as one of the countries exported goods. Any affect to this balance can be detrimental to Morocco as well as its exported countries. In 2002 to 2004 there was a very long extended drought that occurred which hurt a lot of markets including agriculture and business aspects. While this was happening Morocco’s GDP was dropping and the economy was damaged (1). In 2004 after the drought was over, Morocco was taking steps to get the country back on its feet, by taking out loans and getting a new health insurance plans to better the people. This is in all hopes that the GDP will eventually rise with a good harvest at the end of the year. These actions just show how important water and electric play in the economic role of Morocco. Since water plays such an important role in irrigation of agriculture in the country, and also being able to provide electricity by using hydropower, any kind of shortage of water or drought in the climate can affect the country in both and economic and social aspect.
1. African Business. London, Morocco : Economy recovers as rain continues to fall, Apr. 2004. 11-1-07 http://ucfproxy.fcla.edu/login?url=http://proquest.umi.com.ucfproxy.fcla.edu/pqdweb?did=1355523&sid=3&Fmt=2&clientId=20176&RQT=309&VName=PQD
2. Mohammed Rachid Doukkali, Water institutional reforms in Morocco, Aug. 2004. 11-1-07 http://www.iwaponline.com/wp/00701/0071/007010071.pdf
3. CIA fact book : Morocco. 18 Oct. 2007. 11-1-07 https://www.cia.gov/library/publications/the-world-factbook/geos/mo.html#Trans
